Focus on interesting statistical methods: Value of Information

In various industries and everyday situations, decision-making requires navigating uncertainty. Within cybersecurity, this might involve selecting appropriate security awareness training, scheduling penetration tests, or choosing authentication methods. Statistical tools like decision trees assist by clarifying the situation.

Gathering Information for Better Decisions

Before deciding, decision-makers must understand involved variables and collect relevant data. However, information gathering carries costs — both financial and temporal. Consider planning a hiking trip: weather forecasts are essential, but additional research (purchasing maps, consulting locals) requires time and resources.

Understanding Value of Information

Value of Information represents what a decision-maker would reasonably pay for new data. The calculation compares prior information (existing knowledge and beliefs) against posterior information (computed after selecting variables to observe).

Decision-makers can adopt two approaches:

• Static approach: Gather all data simultaneously
• Dynamic approach: Collect initial data, evaluate outcomes, then determine if additional information is necessary

Making Strategic Choices

This analysis precedes actual data collection, requiring careful consideration of uncertainties. Decision-makers should prioritize information yielding maximum average value. VOI guides selection of worthwhile data while indicating optimal collection timing and locations.

At Praxis Security Labs, this methodology helps clients identify the most beneficial solutions by strategically determining what information truly matters.